GRETNA – H&R Block is being sued by prospective franchise owners who claim their purchase agreement for a local franchise was rescinded after the purchase had already been accepted.

CG & JS Enterprises LLC, Christopher Gibbens and Johnny Shaw filed suit against H&R Block Inc. in the 24th Judicial District Court on April 16.

The plaintiffs claim they entered into an agreement to purchase the H&R Block location at 4033 Veterans Memorial Blvd. in Metairie. In negotiations for the purchase the plaintiffs assert they reached an agreement from the franchise owners. On Sept. 6, 2012 the plaintiffs allegedly were notified by H&R Block that their franchise application had been approved and they could move forward with the purchase.  On Sept. 12, 2013 the plaintiffs claim they received approval of the sale in writing by H&R Block and the following day an executed act of sale was made to the franchise’s previous owners. However, two weeks later on Sept. 26, 2013 the plaintiffs were notified by H&R Block that it had decided to withdraw approval of the transfer and was going to exercise its right to purchase the office.

The defendant is accused of interference of contract and bad faith.

An unspecified amount in damages is sought for damages equal to the amount of purchase for the office, damages equal to the value of time and effort spent pursuing acquisition of the office’s assets, loss of reasonably anticipated income from business, attorney’s fees and emotional pain and anguish.

CG & JS Enterprises LLC, Christopher Gibbens and Johnny Shaw are represented by attorney Matthew P. Chenevert of New Orleans.

The case has been assigned to Division F Judge Michael P. Mentz.

Case no. 737-533.

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